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Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance

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  • Libo Li

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Wenbing Wu

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Mingyu Zhang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Lu Lin

    (School of Economics and Management, China University of Petroleum Beijing, Beijing 102249, China)

Abstract

Given the growing awareness of sustainable development, the environmental protection industry has attracted much attention. Green finance has developed rapidly in policymaking and practices. This study provides a framework for evaluating green finance via linkage analysis based on input–output theory. Measurements on industrial linkages are calculated in China in two provinces from 2002 to 2018, which study the relationship between finance and environmental protection sectors. The results show that the environmental protection sector (EPS) in China has gradually developed from a sector with weak backward and strong forward linkages to a sector with strong backward and weak forward linkages from 2002 to 2015; however, in 2017 and 2018, the EPS returned to a sector with weak backward and strong forward linkages. At the provincial level, the EPS used to be a key sector with strong backward and forward linkages. The connection between the finance sector and the EPS rose first, then declined in the country and the Zhejiang province; Guangdong had a similar evolution in the former period, but it had a rising trend in the latest year. The findings provide insights for further promoting the support from the finance sector to the environmental protection activities.

Suggested Citation

  • Libo Li & Wenbing Wu & Mingyu Zhang & Lu Lin, 2021. "Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance," IJERPH, MDPI, vol. 18(5), pages 1-16, March.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:5:p:2634-:d:511508
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    Cited by:

    1. Chengying Yang & Tajul Ariffin Masron, 2022. "Impact of Digital Finance on Energy Efficiency in the Context of Green Sustainable Development," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    2. Ruxu Sheng & Rong Zhou & Ying Zhang & Zidi Wang, 2021. "Green Investment Changes in China: A Shift-Share Analysis," IJERPH, MDPI, vol. 18(12), pages 1-15, June.
    3. Decai Tang & Hui Zhong & Jingyi Zhang & Yongguang Dai & Valentina Boamah, 2022. "The Effect of Green Finance on the Ecological and Environmental Quality of the Yangtze River Economic Belt," IJERPH, MDPI, vol. 19(19), pages 1-17, September.

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